Aave Deployment on Avalanche + Asset Validation List

Avalanche: Signal for deployment

Summary

The Avalanche Foundation asks for signaling from the Aave community to accept a deployment of the Aave Protocol into Avalanche.

Proposer

The Avalanche Foundation is dedicated to supporting the Avalanche ecosystem and related technologies. The Foundation is part of a larger Avalanche ecosystem and working with other organizations to support the significant development of Avalanche-related technologies.

Avalanche is one of the fastest smart contracts platforms in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche’s C-Chain is an instance of the EVM running with Avalanche’s consensus.

Rationale

  • Current status of the Avalanche C-Chain: The Avalanche network is secured by over 1,000 validators and is scalable to tens or hundreds of thousands of participants due to the performance of Avalanche consensus. While maintaining this level of decentralization, the network can deal with high throughput and provides instant finality in 1-2 seconds, making the network’s C-Chain an incredible playground for DeFi and other EVM applications. The ecosystem already has a slew of native projects offering exchange, lending, and aggregation services, over $1.5bn bridged from Ethereum, over $2.2bn in TVL, and protocols such as SushiSwap and Curve deployed or in the process of deploying.

  • Why it is good for the Aave ecosystem: The Avalanche blockchain is well-suited for building DeFi applications due to scalability, high throughput, and near-instant finality. Through the Avalanche Rush program, the Avalanche foundation has allocated up to $20M AVAX for users of the Aave protocol over a three-month period to earn AVAX rewards while using Aave on Avalanche for the first phase of the program. This program will bring new users to the platform, and reach more users from the established Avalanche community. Having the Aave community embrace deployment on established chains like Avalanche will allow more users to access Aave’s offerings across the DeFi ecosystem.

  • Why signaling is necessary? Consistent with the ethos of the Aave ecosystem, he Avalanche Foundation believes that all deployments of the Aave protocol should be voted on – and accepted by – Aave governance prior to deployment. The Avalanche Rush announcement received a lot of interest from both the Aave and Avalanche communities. Deploying the Aave protocol on Avalanche will support growth and synergies between the communities, ultimately leading to a stronger DeFi ecosystem.

Next Steps

  • Creation of Snapshot vote for the Aave community to signal YES/NO for deployment on Avalanche.
  • Deployment of smart contracts in Avalanche C-Chain and activation of liquidity mining program.

After the Acceptance of the deployment of Aave to Avalanche by the community, we would like to validate the list of initial assets and configurations of the deployment, which are listed below. In addition, a Snapshot proposal has been created.

Snapshot Vote: Snapshot

WAVAX

  • Usage as collateral: Yes

  • LTV: 50%

  • Liquidation threshold: 65%

  • Enabled to borrow: Yes

  • Stable rate enabled: No

  • Liquidation bonus: 10%

  • Reserver factor: 15%

WETH

  • Usage as collateral: Yes

  • LTV: 80%

  • Liquidation threshold: 82.5%

  • Enabled to borrow: Yes

  • Stable rate enabled: No

  • Liquidation bonus: 5%

  • Reserver factor: 10%

WBTC

  • Usage as collateral: Yes

  • LTV: 60%

  • Liquidation threshold: 75%

  • Enabled to borrow: Yes

  • Stable rate enabled: No

  • Liquidation bonus: 5%

  • Reserver factor: 10%

AAVE

  • Usage as collateral: Yes

  • LTV: 40%

  • Liquidation threshold: 65%

  • Enabled to borrow: No

  • Stable rate enabled: No

  • Liquidation bonus: 10%

  • Reserver factor: 20%

DAI

  • Usage as collateral: Yes

  • LTV: 75%

  • Liquidation threshold: 80%

  • Enabled to borrow: Yes

  • Stable rate enabled: No

  • Liquidation bonus: 5%

  • Reserver factor: 10%

USDT

  • Usage as collateral: No

  • LTV: 0

  • Liquidation threshold: 0

  • Enabled to borrow: Yes

  • Stable rate enabled: No

  • Liquidation bonus: 0

  • Reserver factor: 10%

USDC

  • Usage as collateral: Yes

  • LTV: 75%

  • Liquidation threshold: 80%

  • Enabled to borrow: Yes

  • Stable rate enabled: No

  • Liquidation bonus: 5%

  • Reserver factor: 10%

38 Likes

Yes great idea very excited for the AVAX deployment

3 Likes

Wow I can’t wait for AAVE to be on AVAX. Very exciting times ahead of us.

2 Likes

Im also fully behind this

2 Likes

Yes! i’ve been hoping for this for a long time.

2 Likes

Using AVAX is a great experience. There’s a lot of liquidity on the network already too. It’s flourishing.

Let’s bring AAVE there too.

2 Likes

2 Likes

Absolutely, this is a great idea. I’ve used AVAX now a number of times and it’s been an all round fantastic experience.

Evet, avax dağıtımı için çok güzel fikir

Aave on Avalanache is a match made in heaven!

Yes great :心眼: idea very

Avalanche is a great network, their ecosystem is developing very quickly. I am all for this!

waiting for this hue huge experience

Good plan. Move this to snapshot.

Thanks for your proposal, once you have gathered community support you can do a snapshot to get input from token holders only Snapshot

1 Like

“The Avalanche blockchain is well-suited for building DeFi applications due to scalability, high throughput, and near-instant finality” I vote Yes

1 Like

YEEEES.
This is huge.
Can not wait for Aave to deploy on Avalanche.

YES!!! the furure looks bright on Avalanche :cupid:

All - We have created a new snapshot vote (link below) to have the community validate the asset list for aave deployment on Avalanche. We look forward to your comments and votes!

https://snapshot.org/#/aave.eth/proposal/QmbGh1VP1w51PfBWkEmNquD95NJhJ8Eaqma6PP8psP9HGy

2 Likes

What’s the reasoning behind having different risk parameters for an asset across networks? (for example, WBTC is listed here with 60% LTV, but it is 70% LTV on Ethereum Mainnet and Polygon Risk Parameters - Risk)

1 Like